What is the typical consequence of a takeover?

The consequence of a takeover often involves changes in the management or board of directors of the target company. When one company acquires another, it typically seeks to integrate the two entities and align the target company with its own strategic objectives. This frequently leads to a reevaluation of leadership, as the new parent company may want to install its own executives to pursue its vision for the combined organization.

Changes in management can also stem from efforts to enhance operational efficiency, implement new strategies, or streamline decision-making processes. Depending on the nature of the takeover—whether it's friendly or hostile—the extent of these changes can vary. The acquiring company may wish to retain certain key figures from the target company if they possess vital expertise or knowledge, but overall, it is common to see a reshuffling of roles following a takeover.

The other options represent potential outcomes that are less directly associated with the typical nature of a takeover. For instance, dissolution is not a standard consequence of most takeovers, as the goal is often to maintain or integrate the target company's operations. Increased competition or a reduction in shareholder dividends might happen as a result of the business environment influenced by the takeover, but they are not typical direct consequences of the takeover itself.